EBRD and donors support greener businesses and homes in Montenegro

This article is brought to you in association with EBRD.

• EBRD lends up to €12 million to CKB for on-lending to Montenegrin businesses and households
• Loan to improve green standards, reduce CO2 emissions, and enhance competitiveness of Montenegrin businesses and general quality of life in Montenegro
• Cashback grant incentives for businesses and homeowners funded by EU and Japan

The European Bank for Reconstruction and Development (EBRD) is supporting the green transition in Montenegro by helping to improve access to affordable green finance for businesses and homeowners in cooperation with Crnogorska Komercijalna Banka (CKB).

An EBRD loan of up to €12 million is being extended to CKB, supported by grant incentives from the European Union (EU) and the Japanese government, for on-lending to Montenegrin businesses and households with a view to improving energy efficiency and reducing CO2 emissions. The signing of this financing agreement was attended by Matteo Patrone, EBRD Vice President for Banking, Yngve Engstroem, Head of Cooperation at the EU Delegation to Montenegro, and Tamás Kamarási, Chair of CKB’s Management Board.

Matteo Patrone said: “We are proud to continue our support for Montenegro’s transition to green energy by financing energy efficiency improvements in the residential and SME sectors. These investments will help families to improve the comfort of their homes while reducing their energy bills and will help Montenegrin businesses to enhance their competitiveness by complying with green standards.”

Yngve Engstroem added: “Investments in the green economy are a win-win for all involved – less pollution, lower costs, and a better quality of life and business environment. This is a smart way of using non-repayable funds from the EU.”

Tamás Kamarási said: “As the largest bank in Montenegro, Crnogorska Komercijalna Banka is proud to play a key role in supporting the country’s most important projects. Our green agenda is a vital part of our business strategy. We believe that integrating environmental sustainability into our operations and services is essential for long-term success. By supporting green initiatives and projects, we are not only contributing to Montenegro’s environmental goals, but also fostering innovation, competitiveness and economic growth in every sector we serve. As our slogan says, ‘tu smo’ [Eng.: ‘we are here’] to support Montenegro’s progress while fostering a sustainable future for generations to come.”

Up to €7 million of EBRD funding will be lent on to small and medium-sized enterprises (SMEs) for green investments, including investments in energy efficiency, resource efficiency and renewable energy. These investments will help local businesses to comply with EU standards, improving their competitiveness both domestically and in EU markets. These funds are being made available through the EU-supported SME Go Green Programme, which was launched in Montenegro and the rest of the Western Balkans last year.

Those loans will be supplemented by EU-funded grant incentives. Upon successful completion of their investment projects, SMEs will be eligible for a cashback grant totalling 10 per cent of the loan amount – with a higher rate of 15 per cent for investments in renewable energy and the agribusiness value chain.

Homeowners and housing associations will also have access to green financing as a result of this initiative. Up to €5 million of EBRD funding will be lent on to support homeowners’ investments in high-performance green technologies such as thermal insulation, energy-efficient heating and windows, heat pumps and solar panels. In addition to such loans, homeowners and housing associations will receive cashback incentive grants of up to 20 per cent of the value of their loans upon successful installation of energy-efficient technologies. This funding will also support the public sector’s construction of new green residential buildings. These funds are being provided under the EBRD’s Green Economy Financing Facility (GEFF), which has helped over 20,000 households in the Western Balkans to improve the energy efficiency of their homes. GEFF’s work in the Western Balkans is co-funded by the European Union through the Western Balkans Investment Framework, by the governments of Austria, Denmark and Japan, and by Austria and Switzerland through the High-Impact Partnership on Climate Action.

Headquartered in Podgorica, CKB is a 100 per cent subsidiary of OTP Bank Nyrt and the largest bank in Montenegro.

Since Montenegro joined the EBRD in 2006, the Bank has invested €933 million in the country through 96 projects. The Bank’s priorities for Montenegro are competitiveness, the green transition and further integration into regional and global markets.